S&P raises forecast for India's GDP growth

by IANS |

New Delhi, Nov 28 (IANS) S&P Ratings has raised its forecast for India’s GDP growth during the current financial year to 6.4 per cent from the earlier 6 per cent.


“We have revised upwards our projection for this fiscal as robust domestic momentum seems to have offset headwinds from high food inflation and weak exports,” S&P Global Ratings chief economist for Asia-Pacific Louis Kuijs said in a research note on the outlook for the region.


However, the rating agency has lowered its outlook for growth in the next financial year (2024-25) to 6.4 per cent from 6.9 per cent earlier, taking into account a higher base impact and subdued global growth.


S&P’s higher projection for the current financial year (2023-24) is in line with other agencies, but still lower than the government and Reserve Bank of India projection of 6.5 per cent.


The IMF, World Bank, ADB and Fitch expect India’s GDP to expand 6.3 per cent in the current fiscal.


The Indian economy grew 7.2 per cent in the 2022-23 financial year and 7.8 per cent in the April-June quarter.


The second quarter GDP data will be released later this week.


Economists expect the GDP growth to slow down in July-Sept quarter due to the erratic monsoon this year.


On inflation, S&P said the surge during the second quarter is unlikely to have an impact on overall inflation.


“Still, headline inflation remains above the RBI's target of 4 per cent, suggesting it will be a while before the rate cycle turns,” S&P said.

Latest News
After 10-yr stint in BJP, Haryana's Jat leader Birender Singh rejoins Congress Tue, Apr 09, 2024, 02:50 PM
PM Modi to address first public rally for LS polls in MP's Maoist-hit Balaghat Tue, Apr 09, 2024, 12:52 PM
Why India is seeing a rising trend of diseases Tue, Apr 09, 2024, 12:40 PM
IPL 2024: 'Chennai Super Kings should be called Chepauk Super Kings', says Aakash Chopra Tue, Apr 09, 2024, 12:37 PM
Real Madrid request UEFA permission to play Manchester City under a closed roof: Report Tue, Apr 09, 2024, 12:36 PM
IPL 2024: Jonny Bairstow ready to put best foot forward' vs former side SRH Tue, Apr 09, 2024, 12:36 PM
Two killed in road accident in J&K's Udhampur Tue, Apr 09, 2024, 12:33 PM
MVA cracks seat-share formula, Uddhav Thackeray grabs maximum Tue, Apr 09, 2024, 12:31 PM
Toronto, other Canadian cities go dark as millions watch total solar eclipse Tue, Apr 09, 2024, 12:28 PM
MSCI India index rebalancing could see inclusion of 18 stocks with inflow of $2.7 bn Tue, Apr 09, 2024, 12:18 PM
South Korean Prez vows to be among top 3 nations in AI technology Tue, Apr 09, 2024, 12:10 PM
Mobile messenger KakaoTalk's users fall below 45 million for 1st time: Report Tue, Apr 09, 2024, 12:09 PM
X employees facing arrest in Brazil: Elon Musk Tue, Apr 09, 2024, 12:06 PM
Sectors like capital goods, auto lead Sensex to new high Tue, Apr 09, 2024, 12:04 PM
Egypt, Jordan, France urge immediate ceasefire in Gaza Tue, Apr 09, 2024, 12:03 PM